Not Getting Responses to My Queries on CITRH: How Can I Resolve This?

Hi,

As a member of CITRH for the past month, I have posted two queries to date. However, I have not received any responses nor have they been displayed on the site. Could you please guide me in this situation?

Thank you for your reply. The query is regarding the allowance of House Rent Allowance (HRA) along with the basic salary for our company employees. I would like to clarify whether it is necessary for employees to submit the rent agreement or rent receipt. If so, what should be done for employees who do not reside in rented accommodation?

Hi Pallavi,

As per the Income Tax Act, the HRA exemption should be allowed only to those who have the same allowance in their salary structure. For exempting the HRA allowance, the concern needs to get a rental agreement or receipt from the employee. Employees who are staying in their own house cannot get the exemption. They can get an exemption under section 80C if they have a housing loan for the same property.

Regards,
Ashok.

Hi Pallavi,

Including the HRA in the salary structure is a company policy, and it will vary for each company. For employees under the tax bracket, you can accept the HRA bills for those receiving the HRA allowance in their salary structure. However, be sure to concentrate on ensuring that the annual total taxable income does not become negative. This could pose a problem when issuing the Form 16 at the year-end as the income tax authority does not accept negative income.

My suggestion is that it is not necessary to obtain proof for those employees who fall under the tax bracket.

Regards,
Ashok